Scientific Games is a developer of technology-based products and services associated with content for the worldwide gaming and lottery industries. Scientific Games partners with the Georgia Lottery to print and assist in the distribution of scratch-off tickets for the state of Georgia. Their warehouse in Duluth focuses on the order fulfillment of about 70 distinct Georgia Lottery scratch-off tickets to retailers such as gas stations and grocery stores. The warehouse wants to update their warehousing strategy to increase the throughput, minimize labor costs, and implement ergonomic practices in their processes.
Scientific Games reported high overtime costs and opportunities to improve ergonomic practices. The objective of the project was to minimize Scientific Games’ operational costs while implementing ergonomic practices across the warehouse. Throughout the project, the scope of the project evolved into creating a tool to help Scientific Games minimize errors in their inventory tracking process and helping the client build a case to further strengthen their argument to implement better demand visibility and management
To help Scientific Games accomplish their goal of reducing overtime costs, the team developed an order picking strategy that leverages modern technologies such as put-to-light and industrial engineering methodologies such as buffers and pooling. Also, the team developed a database equipped with automated forms to help Scientific Games efficiently manage and manipulate their inventory data. The team also constructed an Excel VBA program to provide scheduling recommendations to Scientific games based on historical demand data and order fulfillment rates.
The deliverable for this warehousing project is four-fold. These deliverables include (1) an improved ergonomic order picking strategy to increase throughput, (2) a modernized inventory tracking tool to minimize data errors, (3) a business case for smoothing the demand, and (4) a worker scheduling strategy to minimize overtime costs.
Value and Impact
Upon implementation of the improved ergonomic picking strategies, the team expects a 42% savings annually of overtime labor costs. The modernized inventory tracking tool drives value by reducing the time spent managing data by 50% as well as reducing the record keeping system’s capacity for errors. Implementation of the scheduling recommendation within the project has the potential to drive savings equating to up to 29% of overtime labor costs. Finally, the impact of the demand management portion of our project has the capability to decrease overtime hours by 81%.